Rumolt Motors has 60 million shares outstanding with a share price of $39 per share. In addition, Rumolt has issued bonds with a total current market value of $3,073 million. Suppose Rumolt's equity cost of capital is 13%, and its debt cost of capital is 9%.

a. What is Rumolt's pre-tax WACC?

b. If Rumolt's corporate tax rate is 30%, what is its after-tax WACC?

A. answer for part a = 10.73%; answer for part b = 9.20%

B. answer for part a = 9.73%; answer for part b = 10.17%

C. answer for part a = 11.02%; answer for part b = 11.03%

D. answer for part a = 9.95%; answer for part b = 9.55%

Group of answer choices